Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 05-14-2007, 07:18 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,348
Blog Entries: 3
How does one write-off the initial "Franchise Fees"?

The IRS has classified Franchise Fees along with trademarks, trade name, goodwill, going concern value and covenants not to compete as Intangible assets.

The IRS has specified clearly in Code Section 197 the treatment of Intangible assets that have been acquired or placed in service after August 10, 1993 and that were used in Trade or Business for the production of income.

The IRS has stated that these assets have to be amortized over 15 years. We use the term amortization instead of depreciation for write off of intangible assets, and the term depreciation is used to identify write-off of tangible assets.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning